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Retirement Discussions / Retire Well on Less
|Subject: Re: SS conclusion||Date: 11/12/2003 10:58 AM|
|Author: SeattlePioneer||Number: 234 of 1491|
Unfortunately, if the bar is set too high, the money saved won't be very much. We read that only ~3.5% of American families are worth more than 1 Million, so cutting benefits off at 1 Million assets would only save 3.5%.
This is an intersting point Cliff and brings up several problems with how you decide who gets the SS benefits and those that don't. How would the government calculate your net worth? Would it include real estate and pensions?
The system isn't set up to tax assets, and I don't think Social Security would be means tested that way. It would be based on income. It's already partially means tested, since low income people receive a higher rate for calculating benefits and Social Security is included for income tax purposes above a certain income. Just more of the same.
And I'd have a fairly low threshhold for reducing benefits too.
Once Social Security is reduced to a welfare program for the poor, instead of a welfare program for the middle class, its magic with the voters will go away.
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